NAF signs US$16.5M poultry feed supply deal with Riyada Tareta

SAUDI ARABIA -NAF for Feed for Industry Company has entered into a major supply agreement worth US$16.53 million (SAR 62 million) with Riyada Tareta Poultry Company, a deal that is set to boost its earnings at a time of declining profits.

The contract, signed on 26 August 2025, requires NAF to deliver 36,000 tons of poultry feed annually, including its Badi, Nami, and Nahi products for broiler production. 

Deliveries began on 1 September 2025, with an option to renew the agreement for an additional year by mutual consent.

According to the company’s filing, the deal accounts for approximately 38 percent of NAF’s total revenue reported for 2024, underscoring its scale and significance.

Flexible terms for growing poultry demand

The terms of the contract allow for adjustments in supply volumes based on Riyada Tareta Poultry’s needs, while pricing will be reviewed every 45 days to reflect market conditions.

NAF noted that the financial impact of the agreement will appear in its third quarter results for 2025.

Founded in 2017 and headquartered in Ar Rass, Saudi Arabia, NAF manufactures compound feeds for cattle, camels, poultry, and other birds. The company sources raw materials such as grains, oilseed cakes, and minerals to produce balanced diets tailored for different animals.

The deal comes as the company navigates weaker earnings in 2025. NAF reported a net profit of US$280,000 (SAR 1.05 million) in the first half of the year, down 84.58 percent from US$1.83 million (SAR 6.86 million) in the same period in 2024. 

Revenue also fell 14.38 percent year-on-year to US$18.09 million (SAR 67.87 million). Earnings per share declined to US$0.15 (SAR 0.55) compared to US$0.91 (SAR 3.43) last year.

Leadership changes at the helm

Alongside the contract, NAF announced a leadership reshuffle. The board approved the resignation of Chief Executive Officer Murshid Abdulaziz Al-Murshidi by mutual agreement, effective 31 August 2025. 

The company’s purchasing manager, Basil Fayez Azar Al-Harbi, has been appointed Acting CEO from 1 September 2025 while retaining his current role until a permanent successor is named.

In its statement, the board expressed “sincere thanks and appreciation to Mr. Murshid Abdulaziz Al-Murshidi for his efforts during his tenure” and wished him success in his future career. 

The directors also conveyed their support for Mr. Al-Harbi, wishing him “success in leading the company during his tenure towards further development and growth.”

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